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Chambers of commerce

Chevron Completes $53 Billion Acquisition of Hess Corp. Following Arbitration Ruling

Strategic Insights

— 1 min read

Chevron's purchase of Hess Corp. has reached completion, valued at $53 billion, after a dispute panel ruled in favor of Chevron in arbitration over Hess assets in a massive oilfield off Guyana's coast. This acquisition had been on hold for over a year due to a clash with rival Exxon, which had claimed a contractual right of first refusal for Hess' stake in the Guyana project. Chevron's stock has risen over 4% in pre-market trading following the news. The deal expands Chevron's oil and gas assets beyond Guyana to the Bakken shale, Gulf of America, Southeast Asia, and other regions.

Key Takeaways:

  • Chevron's acquisition of Hess Corp. is complete at a value of $53 billion, marking a pivotal deal for the company.
  • The International Chamber of Commerce panel's decision in favor of Chevron has resolved a dispute that had stalled the acquisition for over a year.
  • Exxon had claimed a contractual right of first refusal for Hess' stake in the Guyana oil project, which is operated by Exxon and is already producing large volumes.
  • The acquisition brings new oil and gas assets to Chevron, expanding its presence in the Bakken shale, Gulf of America, Southeast Asia, and other regions.
  • Chevron CEO Mike Wirth stated that the deal "enhances and extends our growth profile well into the next decade, which we believe will drive greater long-term value to shareholders."
  • Exxon is producing 650,000 barrels per day in Guyana and is eyeing 1.7 million barrels per day by 2030.
  • Exxon disagreed with the ICC panel's interpretation but respected the arbitration and dispute resolution process.

Statistics:

  • Chevron's stock has risen over 4% in pre-market trading following the completion of the acquisition.
  • The acquisition brings Chevron new oil and gas assets, expanding the company's presence in various regions, including the Bakken shale, Gulf of America, Southeast Asia, and beyond.
  • Exxon is producing 650,000 barrels per day in Guyana and aims to increase production to 1.7 million barrels per day by 2030.

Sources:

  • Chevron's announcement of the acquisition completion (exact date not specified)
  • Exxon's statement responding to the arbitration decision (https://investor.exxonmobil.com/company-information/press-releases/detail/1190/exxonmobil-responds-to-international-chamber-of-commerce)

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